Understanding how fees are calculated.
There are 4 different fees the user should know about.
- 1.Inbound Fee (sourceChain: gasRate * txSize)
- 2.Liquidity Fee (swapSlip * swapAmount)
- 3.Affiliate Fee (affiliateFee * swapAmount)
- 4.Outbound Fee (destinationChain: gasRate * txSize)
- SourceChain: the chain the user is swapping from
- DestinationChain: the chain the user is swapping to txSize: the size of the transaction in bytes (or units)
- gasRate: the current gas rate of the external network
- swapAmount: the amount the user is swapping swapSlip: the slip created by the
- swapAmount, as a function of poolDepth
- affiliateFee: optional fee set by interface in basis points
This is the fee the user pays to make a transaction on the source chain, which the user pays directly themselves. The gas rate recommended to use is
fastwhere the tx is guaranteed to be committed in the next block. Any longer and the user will be waiting a long time for their swap and their price will be invalid (thus they may get an unnecessary refund).
This is simply the slip created by the transaction multiplied by its amount. It is priced and deducted from the destination amount automatically by the protocol.
In the swap transaction you build for your users you can include an affiliate fee for your exchange (accepted in $RUNE or a synthetic asset, so you will need a $RUNE address).
- The affiliate fee is in basis points (0-10,000) and will be deducted from the inbound swap amount from the user.
- If the inbound swap asset is a native THORChain asset ($RUNE or synth) the affiliate fee amount will be deducted directly from the transaction amount.
- If the inbound swap asset is on any other chain the network will submit a swap to $RUNE with the destination address as your affiliate fee address.
- If the affiliate is added to an ADDLP tx, then the affiliate is included in the network as an LP.
This is the fee the Network pays on behalf of the user to send the outbound transaction. To adequately pay for network resources (TSS, compute, state storage) the fee is marked up to be 3 times the actual on-chain fee the nodes pay.
The minimum Outbound Layer1 Fee the network will charge is on
/thorchain/mimirand is priced in USD (based on THORChain's USD pool prices). This means really cheap chains still pay their fair share. It is currently set to
Fees are taken in the following order when conducting a swap.
- 1.Inbound Fee (user wallet controlled, not THORChain controlled)
- 2.Affiliate Fee (if any) - skimmed from the input.
- 3.Swap Fee (denoted in output asset)
- 4.Outbound Fee (taken from the swap output)
To work out the total fees, fees should be converted to a common asset (e.g. RUNE or USD) then added up. Total fees should be less than the input else it is likely to result in a refund.
If a transaction fails, it is refunded, thus it will pay the
outboundFeefor the SourceChain not the DestinationChain. Thus devs should always swap an amount that is a minimum of:
- 1.The Destination Chain outboundFee
- 2.The Source Chain outboundFee
gas_rateproperty can be used to estimate network fees for each chain the swap interacts with. For example, if the swap is
BTC -> ETHthe swap will incur fees on the bitcoin network and Ethereum network. The
gas_rateproperty works differently on each chain "type" (e.g. EVM, UTXO, BFT).
gas_rate_unitsexplain what the rate is for chain, as a prompt to the developer.
outbound_tx_sizeis what THORChain internally budgets as a typical transaction size for each chain.
gas_rate * outbound_tx_size * 3and developers can use this to budget for the fee to be charged to the user.
Keep in mind the
outbound_feeis priced in the gas asset of each chain. For chains with tokens, be sure to convert the
outbound_feeto the outbound token to determine how much will be taken from the outbound amount. To do this, use the
getValueOfAsset1InAsset2formula described in the
THORChain uses the gas_rate as the flat Binance Chain transaction fee.
E.g. If the
gas_rate= 11250 then fee is 0.0011250 BNB.
For UXTO chains link Bitcoin,
gas_rateis denoted in Satoshis. The
gas_rateis calculated by looking at the average previous block fee seen by the THORNodes.
All THORChain transactions use BECH32 so a standard tx size of 250 bytes can be used. The standard UTXO fee is then
For EVM chains like Ethereum,
gas_rateis denoted in GWei. The
gas_rateis calculated by looking at the average previous block fee seen by the THORNodes
An Ether Tx fee is:
gasRate * 10^9 (GWEI) * 21000 (units).
An ERC20 Tx is larger:
gasRate * 10^9 (GWEI) * 70000 (units)